The invention pertains to digital data processing and, more particularly, to methods and apparatus for optimizing inventory allocations and pricing for goods sold by multiple retail sites, e.g., retail stores and/or departments. The invention has application, by way of non-limiting example, in facilitating in-season tactical decisions by retail chains and other enterprises.
In current practice, retail enterprises (e.g., national or regional retail chains) handle in-season allocations of on-hand inventory at distribution centers (DCs) to retail sites (e.g., stores or departments) in a simple way based on the sites' own respective on-hand inventory positions and recent sales histories. This process typically involves (i) adding up the DC's on-hand inventory and the sites' on-hand inventory positions to get the total on-hand inventory; (ii) assigning that total inventory to each site in proportion to that site's recent sales history, e.g., the last four weeks of sales (for example, a site that sold a large amount of inventory during the last four weeks will be assigned a large share of the total inventory); and (iii) adjusting this assignment with each site's on-hand inventory position. If a site's on-hand inventory is more than its assigned inventory (as determined in step (ii)), no additional inventory is allocated to that site. If it is less, the difference between the assigned and on-hand amounts is sent to the site.
More sophisticated systems handle in-season allocations differently: they may use a forward four-week sales forecast (as opposed to the last four weeks' of sales) to divide up the total inventory. Regardless, the in-season allocation decisions made by these prior art systems do not take sufficient account of the retail sites' ability to sell or otherwise dispose of inventory that is allocated to them via appropriate pricing actions.
An object of this invention is to provide improved methods and apparatus for facilitating in-season tactical decisions in retailing.
A more particular object is to provide such methods and apparatus to facilitate inventory allocations among retail sites (e.g., stores and/or departments) within a retail enterprise.
A related object is to provide such methods and apparatus to take into account the retail sites' varying ability to sell or otherwise dispose of inventory that is allocated to them.
Another related object is to provide such methods and apparatus to facilitate pricing decisions in connection with inventory allocation.
Still another object is to provide such methods and apparatus as can be readily implemented in existing and future business process systems, automated or otherwise.